Money Tree Portfolio Update: Added TGT, gain so far 20.2%

By | May 8, 2014

These past few weeks have been quite busy and a lot of volatility has encountered the market. For the money tree portfolio, I decided to trim positions in SO and T as I am more focused on stocks that are underpriced, present higher growth, yet have a generous dividend yield. Event driven concerns create environments in the market that can leave certain companies cheaper than they should be. And I am all for that as a value investor.

Target (TGT) has been overcome with negative press with their IT security breach this past holiday season. TGT also announced declining quarterly revenue as shoppers have stayed away from Target as a result of the breech. Now former CEO Gregg Steinhafel left abruptly a couple days ago, which sent the stock plunging. Fundamentally TGT is solid, has a 3% dividend yield and also is trading at 12 times earnings. Trading at $58, TGT should easily be priced at $72.

Trimming the two positions and adding TGT, has increased my original cost basis of the money tree portfolio to $18,694.55. The current market value of all of the securities in the portfolio are now $22,472.41 or 20.21% gain excluding dividends. Also add the average dividend yield of 2.4%, which is an additional return for the portfolio.


Below are previous articles of the money tree portfolio to give you a background:

Money tree portfolio gained 9.4% in 4 months!



Spending Priorities For A Cash Flow Investor
Investing in Oil and Gas Partnerships